An Idaho single-member LLC operating agreement helps a sole proprietor establish their company’s ownership, policies, and procedures. Although not required in Idaho, protecting personal assets from legal consequences in case of litigation, bankruptcy, or business failure is recommended. This document safeguards the owner’s assets and offers tax benefits.
Step 1: Company Name
Input your LLC’s name at the beginning of the document. This identifies the official name of the LLC being formed and is crucial for legal and tax purposes.
For example, if you’re setting up a gardening service business, you could name it “Blooming Idaho, LLC.”
Step 2: Date
Fill in the date you sign the agreement. The date indicates when the operating agreement takes effect. This provides a clear record of when the terms were agreed to.
If you’re signing the agreement on September 15, 2023, you would fill in the date as “September 15, 2023.”
Step 3: Company and Member Information
Input the sole member’s name and the name of the LLC, indicating who owns the company and is responsible for its operations.
Here, you would write “Jane Davis” as the sole member and “Blooming Idaho, LLC” as the company name.
Step 4: Formation Date
Write the name of your LLC and the date you filed the Articles of Organization with the state of Idaho, confirming your LLC’s legal establishment.
If your LLC was legally created on September 1, 2023, you would fill in “Blooming Idaho, LLC” and “September 1, 2023” respectively.
Step 5: Purpose
In the “Purposes and Powers” section, describe your LLC’s primary purpose or business activities. This clarifies your company’s scope of operations.
In this section, you might write “The primary purpose of Blooming Idaho, LLC is to provide high-quality gardening services to customers in Idaho.”
Step 6: Authority
In the Authority section, input the sole member’s name, emphasizing their power to make decisions and act on behalf of the LLC.
Here, you would enter the name of the sole member who has decision-making authority, “Jane Davis.”
Step 7: LLC Name
Include the name of your company for the last time here. Repeating the formal LLC name connects back to the identifying details in Step 1. This maintains consistency.
You would again write the name of your business, “Blooming Idaho, LLC.”
Step 8: Signature and Printed Name
At the end of the document, sign on the “Managing Member’s Signature” line and print your name below. This demonstrates your acceptance of the terms and commitment to follow the operating agreement.
To finalize the document, you would sign your name “Jane Davis” and print your name below the signature, “Jane Davis.”
Notarization
Finally, have a Notary Public witness and acknowledge your signature. The notary will complete the acknowledgment section, including the state, county, and date. They’ll confirm your identity, sign, and provide their commission expiration date. This step adds legitimacy to your operating agreement.
Conclusion
A well-structured single-member LLC operating agreement for an Idaho-based company provides crucial protection for the owner’s personal assets and offers tax advantages. By carefully completing each section of the document, sole proprietors establish a strong legal and operational foundation for their business, ensuring long-term success and stability.
